Some good news is always welcome
K.
Topic: Britain to scrap VAT taxes on Bitcoin trades - page 2. (Read 2003 times)
Go UK!!
Some good news is always welcome
K.
Some good news is always welcome
K.
capital gains tax is only on legitimate financial products/contracts. such as stocks and shares. capital gains tax and bitcoins are not even in the same ballpark to be seen playing together.
So if I bought bitcoins with pounds and sold them for pounds, would I have to pay CGT on that?
No, you'd pay income tax on your profit (or corp tax on your profit, if you're a business).What about bitcoins I received from other people?
If you're given a gift and then you sell it, there's no tax on that.But if trading bitcoins is your business (as a sole trader or actual incorporated business) then you need to pay tax on the profit.
I am not an accountant and this is not tax advice so if in doubt ask your accountant / HMRC.
So if I bought bitcoins with pounds and sold them for pounds, would I have to pay CGT on that? What about bitcoins I received from other people?
I thought it was Capital Gains tax, not Income tax?
no no no, cant you lot read or atleast research.
capital gains is the about the " tax on margins " that the OP post mentions..again exempt
you only have to pay tax on your income..
for business this is corporation tax (dont confuse it with capital gains)
for personal its income tax.
please research properly and dont speculate when it comes to tax
It'll be capital gains for long term holders cashing out I presume.
Here's a summary from Reddit
Income from miners is VAT exempt
Charges for arranging transactions in crypto-currencies is VAT exempt
Crypto-currencies transferred to fiat is VAT exempt
VAT due as normal for selling goods/services paid in crypto-currencies (calculated in GBP at point of transaction)
Corporation Tax: no special rules apply, it will be treated as foreign exchange and loan relationships
Income Tax: business profits from crypto-currencies taxed as normal income
Capital Gains: gains or losses from crypto-currencies allowable as CG for an individual or corporation tax for a business
Gambling gains are not taxable although losses cannot be offset against other gains
Here's a summary from Reddit
Income from miners is VAT exempt
Charges for arranging transactions in crypto-currencies is VAT exempt
Crypto-currencies transferred to fiat is VAT exempt
VAT due as normal for selling goods/services paid in crypto-currencies (calculated in GBP at point of transaction)
Corporation Tax: no special rules apply, it will be treated as foreign exchange and loan relationships
Income Tax: business profits from crypto-currencies taxed as normal income
Capital Gains: gains or losses from crypto-currencies allowable as CG for an individual or corporation tax for a business
Gambling gains are not taxable although losses cannot be offset against other gains
spoke to HMRC last year
bitcoins was "out of scope" to of been VAT required so VAT was not needed before.
but atleast we now can 100% know that HMRC wont be requiring us to register for VAT officially now they have formally evaluated bitcoin. and all we have to do is pay income tax.
YAY its official
bitcoins was "out of scope" to of been VAT required so VAT was not needed before.
but atleast we now can 100% know that HMRC wont be requiring us to register for VAT officially now they have formally evaluated bitcoin. and all we have to do is pay income tax.
YAY its official
I thought it was Capital Gains tax, not Income tax?
spoke to HMRC last year
bitcoins was "out of scope" to of been VAT required so VAT was not needed before.
but atleast we now can 100% know that HMRC wont be requiring us to register for VAT officially now they have formally evaluated bitcoin. and all we have to do is pay income tax.
YAY its official
bitcoins was "out of scope" to of been VAT required so VAT was not needed before.
but atleast we now can 100% know that HMRC wont be requiring us to register for VAT officially now they have formally evaluated bitcoin. and all we have to do is pay income tax.
YAY its official
its interesting but necessary to pay taxes. I agree but it should be less.
VAT is necessary on bitcoin?!?!? get outta here
Here's a link that isn't behind a paywall:
http://webcache.googleusercontent.com/search?q=cache:http://www.ft.com/cms/s/0/1b9f434e-a209-11e3-87f6-00144feab7de.html#axzz2ukj4xD3W
hostmaster, you may be misunderstanding what sort of tax this is. It isn't referring to income tax. It's referring to Value Added Tax, which is similar to a US Sales Tax.
The previous ruling from HMRC was that VAT would be due on the sale of bitcoins as if they were an object or service, thus increasing the cost by 20% to the end user. That is not how trade in traditional currencies is treated in the UK; that would normally be outside the scope of VAT.
The new ruling will treat bitcoin the same, which is obviously good news.
http://webcache.googleusercontent.com/search?q=cache:http://www.ft.com/cms/s/0/1b9f434e-a209-11e3-87f6-00144feab7de.html#axzz2ukj4xD3W
hostmaster, you may be misunderstanding what sort of tax this is. It isn't referring to income tax. It's referring to Value Added Tax, which is similar to a US Sales Tax.
The previous ruling from HMRC was that VAT would be due on the sale of bitcoins as if they were an object or service, thus increasing the cost by 20% to the end user. That is not how trade in traditional currencies is treated in the UK; that would normally be outside the scope of VAT.
The new ruling will treat bitcoin the same, which is obviously good news.
its interesting but necessary to pay taxes. I agree but it should be less.
The Financial Times is reporting that the UK is to scrap taxes on Bitcoin trading. Here's a small quote from the article (behind a paywall)
"In a meeting with a group of UK traders last week, HM Revenue & Customs said it would not charge the 20 per cent VAT tax on trades, which entrepreneurs had complained made their businesses globally uncompetitive. HMRC went a step further, saying it would not charge the tax on their margins either.
The ruling sidesteps the thorny question of whether to class Bitcoin as a currency, but effectively treats it as such, and bases its policy on the EU law that exempts payments and transfers of “negotiable instruments” from tax."
http://www.ft.com/cms/s/0/1b9f434e-a209-11e3-87f6-00144feab7de.html
Good to see pro-bitcoin policies being put in place in the UK. No doubt the City of London wants in on the trade.
"In a meeting with a group of UK traders last week, HM Revenue & Customs said it would not charge the 20 per cent VAT tax on trades, which entrepreneurs had complained made their businesses globally uncompetitive. HMRC went a step further, saying it would not charge the tax on their margins either.
The ruling sidesteps the thorny question of whether to class Bitcoin as a currency, but effectively treats it as such, and bases its policy on the EU law that exempts payments and transfers of “negotiable instruments” from tax."
http://www.ft.com/cms/s/0/1b9f434e-a209-11e3-87f6-00144feab7de.html
Good to see pro-bitcoin policies being put in place in the UK. No doubt the City of London wants in on the trade.
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